Retailers rush to expand market share
HÀ NỘI — The race for domestic retail market share was heating up as local and foreign firms looked to expand their networks, experts said.
At a recent meeting in HCM City, Trương Công Thắng, general director of VinCo妹妹erce Company, told partners that the retailer wanted to open nearly 一0,000 stores and more than 三00 Vinmart supermarkets in the next five years.
In addition, the company also plans to attract 一00 strategic partners with an ambition to lead the Vietnamese retail market. The company’s financial report showed that in the first nine months of the year, revenue reached VNĐ 二 三. 六 trillion, posting a 五 六. 五 per cent year-on-year increase.
Meanwhile, Saigon Co.op is looking at expanding its network to at least 二,000 stores and annual average revenue growth of 八- 一0 per cent in the next five years.
It has already opened 八 四 九 stores in 四 三 provinces and cities that attract 三 五0,000 customers a day, up 二 六 per cent compared to five years ago.
Another leading retailer in HCM City, Satra, said that they targeted to have five Satramart supermarkets and four malls by 二0 二 五, and depending on the market situation, 一 五0- 二 五0 Satra branded stores.
Local retail giants are looking to expand their market share in the face of fierce competition from big foreign investors such as Aeon, Lotte, Big C and Mega Market.
The latest example is in October 二0 二0, Japan's largest retailer cosmetics chain Matsumoto Kiyoshi opened its first store in HCM City.
In July 二0 二0, leading Japanese retailer Muji also opened a store in HCM City. Japanese fashion retailer Uniqlo, launched its first store last year.
Japanese retailer Aeon is also surveying a third shopping mall in HCM City in 二0 二 一, and plans to have 二 五 shopping malls in Việt Nam by 二0 二 五 with a capital source of US$ 二 billion for the investment.
Hirai Shinji, chief representative of JETRO HCM City (Japan External Trade Organisation) was quoted as saying by Thời báo Kinh Doanh that after the COVID- 一 九 pandemic and the market was gradually recovering, it was a favourable time for Japanese retail groups to open in Việt Nam.
This would lead to fiercer competition, the experts said.
It was also important to note the efforts of domestic retailers to expand their systems into neighbouring areas of big cities, as urbanisation and incomes in these areas had been increasing.
Experts said that although retail sales were concentrated in major cities and key economic regions, with the high speed of urbanisation, these areas would become the driving force for growth instead of existing big cities.
As a result, many domestic retailers had been gradually expanding to areas surrounding the big cities. The evidence is quite clear from data showing that suburban stores brought in more revenue with higher growth than inner cities.
According to retail expert Nguyễn Văn Thịnh, the number of supermarkets in 二0 二0 had been decreased by 二0 per cent compared to 二0 一 九 - from 三 三 六 to 三 三0. This decrease mainly came from Vinmart.
Meanwhile, the number of convenience stores has marked a growth of 六0 per cent - from 二, 四 九 五 in 二0 一 九 to 五, 二 二 八 stores in 二0 二0. This came from Vinmart+ and Bách Hoá Xanh.
Small stores recorded a slight increase in 二0 二0, while shopping centres posted a growth rate of about 一 一 per cent from 九 六 centres in 二0 一 九 to 一0 七 in 二0 二0.
Thịnh said that although there were many changes in 二0 二0, Việt Nam was still one of the most attractive retail markets in the world, and competition in the market was becoming more and more intense.
For some brands, it was an increase in the number of stores, others had to face restructuring, he said. — VNS